Belt-tightening Reduces Hbj's 2nd Quarter Loss

Harcourt Brace Jovanovich Inc. said Thursday it reduced its second- quarter loss this year, thanks to lower corporate expenses and improvements in its publishing division.

The Orlando company lost $62.95 million on sales of $446.58 million for the three months ended June 30, compared with a loss of $70.76 million on sales of $361.57 million last year.

For the six-month period, HBJ reported a loss of $115.43 million on sales of $753.27 million, compared with a loss of $80.15 million on sales of $647.29 million in the first half of last year.

HBJ typically reports a weak first half of the year because of the seasonality of textbook sales. However, the quarterly and six-month results were affected by two expenses associated with the company's 1987 takeover defense.

In the first half of the year, HBJ paid $35.33 million in preferred-stock dividends, including $18.39 million paid in the second quarter. Without the dividends, HBJ's quarterly loss would have been $44.56 million, and six-month results were affected by two expenses associated with the company's 1987 takeover defense.

In the first half of the year, HBJ paid $35.33 million in preferred-stock dividends, including $18.39 million paid in the second quarter. Without the dividends, HBJ's quarterly loss would have been $44.56 million, and its six- month loss $80.09 million.

In addition, the company increased its interest payments more than fourfold for the quarter, from $16.66 million last year to $78.75 million this year. For the six months, interest expenses increased to $146.03 million, compared with $27.91 million.

HBJ views the quarter as overwhelmingly positive, said John F. Berardi, the company's senior vice president and treasurer.

HBJ's income from operations -- and before any recapitalization charges -- was $38.34 million for the quarter, compared with $13.71 million last year. Operating income in its publishing division was $22.20 million on sales of $193.82 million, compared with a loss of $4.12 million last year. In its parks division, income was down 15 percent, to $12.12 million on sales of $124.26 million. In its insurance division, the company said income decreased 7 percent to $9.37 million on sales of $128.39 million.